Thursday, August 31, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 15 major stocks, including Oracle Corporation (ORCL), Abbott Laboratories (ABT) and Sanofi (SNY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Oracle shares have outperformed the Zacks Tech (+47.5% vs. +40.2%) as well as the broader market (+47.5% vs. +18.6% for the S&P 500 index) over the year-to-date period. The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings.

Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with NVIDIA and Microsoft benefits Oracle.

Oracle is partnering with NVIDIA to build the world's largest high-performance computer, an AI computer, with 16,000 GPUs. The company also announced that it is launching a generative AI cloud service for enterprise customers. However, stiff competition is hurting growth.

(You can read the full research report on Oracle here >>>)

Shares of Abbott have outperformed the Zacks Medical - Products industry over the past six months (+4.6% vs. +0.5%). The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets, the Zacks analyst expects Abbott to register a sales CAGR of nearly 5% through fiscal 2025.

Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region. Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.

However, a steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China might impede overall growth in the coming period.

(You can read the full research report on Abbott >>)

Sanofi shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+14.8% vs. +9.5%). The company’s specialty Care unit is on a strong footing, particularly with outstanding growth trajectory of Dupixent, which has become the key top-line driver for Sanofi.

Dupixent enjoys strong demand trends across all approved indications and geographies. Sanofi possesses a leading vaccine portfolio, which has become the primary top-line driver. Its R&D pipeline is strong. Several data readouts are expected in 2023.

The company has also launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. However, headwinds include the weak performance of diabetes drugs and recent negative pipeline developments.    

(You can read the full research report on Sanofi here >>>)

Other noteworthy reports we are featuring today include Exelon Corporation (EXC), Realty Income Corporation (O) and Hilton Worldwide Holdings Inc. (HLT).

Director of Research

Sheraz Mian

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>